Can Annex Brands change a franchisee's schedule for making periodic fee payments?

According to Annex Brands's 2025 Franchise Disclosure Document, Annex Brands has the authority to modify a franchisee's payment schedule for periodic fees. Annex Brands can adjust the intervals for these payments, as well as the related reports of Gross Receipts and other financial information. To implement such changes, Annex Brands must provide advance written notice to the franchisee and update the relevant manuals.

This provision grants Annex Brands significant flexibility in managing its revenue streams and financial reporting. For a prospective franchisee, this means that the payment schedule outlined in the initial franchise agreement is not necessarily fixed. Annex Brands could, for example, switch from monthly to weekly payments, or alter the due dates to better align with their own financial cycles.

While this flexibility benefits Annex Brands, it introduces an element of uncertainty for franchisees. Franchisees need to be prepared to adapt to potential changes in their payment schedules and reporting requirements. It is crucial for prospective franchisees to carefully review the terms of the franchise agreement and understand the potential implications of this clause on their cash flow management. Furthermore, franchisees should maintain open communication with Annex Brands to stay informed about any upcoming changes and to address any concerns they may have.